Groupon, Inc. (NASDAQ:GRPN) Given Consensus Rating of "Hold" by Brokerages

Key Points

• Consensus "Hold": Five analysts give Groupon an average rating of Hold (2 sell, 1 hold, 2 buy) with a mean 1‑year target of $33.67.
• Recent earnings miss and weak profitability: Last quarter Groupon reported EPS of $0.17 (vs. $0.19 expected) and revenue of $132.7M (vs. $137.3M expected), and shows negative profitability (ROE -717.37%, net margin -16.76%); analysts forecast full‑year EPS of -0.31.
• Valuation and ownership: Shares trade around $11.86 with a market cap of about $483M, a 1‑year range of $9.17–$43.08, and roughly 90% of stock held by institutional investors.

Groupon, Inc. (NASDAQ:GRPN - Get Free Report) has earned an average recommendation of "Hold" from the five analysts that are covering the firm, MarketBeat reports. Two equities research analysts have rated the stock with a sell rating, one has assigned a hold rating and two have issued a buy rating on the company. The average 1-year target price among analysts that have covered the stock in the last year is $33.6667.

A number of equities analysts recently issued reports on the company. Weiss Ratings restated a "sell (d)" rating on shares of Groupon in a research note on Monday, December 29th. The Goldman Sachs Group reduced their target price on Groupon from $17.00 to $10.00 and set a "sell" rating for the company in a research note on Thursday, March 12th.

Groupon Price Performance

Shares of GRPN stock opened at $11.86 on Friday. The firm has a market capitalization of $483.18 million, a price-to-earnings ratio of -5.59 and a beta of -0.04. The business has a fifty day moving average of $11.95 and a 200 day moving average of $16.15. Groupon has a 1 year low of $9.17 and a 1 year high of $43.08.

Groupon (NASDAQ:GRPN - Get Free Report) last issued its earnings results on Tuesday, March 10th. The coupon company reported $0.17 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.19 by ($0.02). The firm had revenue of $132.71 million during the quarter, compared to analysts' expectations of $137.34 million. Groupon had a negative return on equity of 717.37% and a negative net margin of 16.76%. As a group, equities research analysts expect that Groupon will post -0.31 earnings per share for the current year.

Institutional Investors Weigh In On Groupon

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Quarry LP grew its position in Groupon by 48.1% during the 3rd quarter. Quarry LP now owns 1,938 shares of the coupon company's stock worth $45,000 after purchasing an additional 629 shares during the period. CWM LLC grew its position in Groupon by 85.2% during the 3rd quarter. CWM LLC now owns 1,858 shares of the coupon company's stock worth $43,000 after purchasing an additional 855 shares during the period. Royal Bank of Canada grew its position in Groupon by 18.7% during the 4th quarter. Royal Bank of Canada now owns 6,887 shares of the coupon company's stock worth $122,000 after purchasing an additional 1,085 shares during the period. Caitong International Asset Management Co. Ltd acquired a new stake in Groupon during the 3rd quarter worth about $32,000. Finally, Franklin Resources Inc. grew its position in Groupon by 6.9% during the 4th quarter. Franklin Resources Inc. now owns 21,340 shares of the coupon company's stock worth $376,000 after purchasing an additional 1,377 shares during the period. 90.05% of the stock is owned by institutional investors and hedge funds.

Groupon Company Profile

Groupon, Inc operates an online marketplace that connects subscribers with local merchants offering discounted goods, services and experiences. Through its website and mobile applications, Groupon provides time-limited deals across categories such as restaurants, travel, beauty and wellness, home services, and consumer products. Merchants partner with Groupon to attract new customers and drive foot traffic, leveraging the platform's targeted marketing tools and large subscriber base to promote special offers and vouchers.

Founded in Chicago in 2008 by Andrew Mason, Eric Lefkofsky and Brad Keywell, Groupon pioneered the daily-deals model, quickly growing its user community and merchant network.

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